A project with the objective to investigate the use of smart electrical storage heating systems in housing archetypes with spatial constraints or limited access to external wall space. The solution will be installed, trialled, and monitored within customer homes in order to understand the practicality of this low-carbon heating technology as well as the impact of such a solution on the network. The findings of this project will ensure that the distribution network operators obtain insight into such technology. Therefore, not form an obstacle in allowing customers to participate in the decarbonisation journey.
Benefits
The high-level network benefits from this project come from the potentially deferred reinforcement costs. We anticipate that the customer uptake of heating technologies similar to the ZEB will start increasing as we approach the 2035 mark (ban on boiler installation). Therefore, no direct benefits or savings are estimated to be realised throughout the duration of RIIO-1 and RIIO-2.
Learnings
Outcomes
Through the Neat Heat project, we are monitoring all ZEBs using the metering onboard the ZEBs as well as smart meter data for the home. So far, we are seeing ZEBs responding well to the Neat Heat tariff price signal – delivering electrical input to charge the ZEBs during low-cost periods, while still delivering heating when customers expect it.
Neat Heat power consumption and heat output – January to November 2023: >95% of total energy consumption has been derived outside of the four most expensive hours provided by the Neat Heat tariff with strong decoupling of power consumption vs heating output across the seasons/temperature ranges experienced so far.
These results demonstrate that thermal storage is an effective solution to low carbon heating – using demand flexibility to draw power at the lowest cost (or in the future, lowest carbon, lowest grid-constraint, highest-value) periods throughout the day.
The Neat Heat project uses one, static price curve, factoring in OVO Energy’s cost-of-goods for electricity supply. With future changes in the energy system, it would be possible to consider a wider range of inputs to ZEB charging – helping to meet the flexibility needs of more actors in the system. Daily tariff variation, turn-up/turn-down signals and incentives to utilise the lowest carbon energy could all be utilised to fully leverage the storage potential of the ZEB to deliver greater cost efficiencies, value to customers and carbon reduction as we transition to low carbon heating.
Lessons Learnt
ZEB understanding and confidence – the ZEB is a new product, which operates in a familiar way in terms of heating (thermostat, programmer, boiler responds and delivers heating to radiators), but the charging side of how a thermal store works is new to all customers in the trial. As we have moved from winter into mild weather and summer, customers have needed support in their understanding of how the ZEB will respond, whether and how to use the boiler’s away mode (depending on their home setup). Using smart charging to automatically make these changes simultaneously reduces the need for customers to micro-manage their ZEB, but can create a sense of uncertainty about when and how much their boiler will charge. As part of the learnings from this project, Tepeo are investigating how to display planned charging to customers so they can better understand what the ZEB intends to do, intervene if they disagree/ need to and improve the overall confidence in automatic charging based on the energy system need. We believe this will be crucial for mass market adoption of any automatically scheduled devices (EV chargers, home batteries, hot water stores).
Knowledge of heating systems – this is low across the customers who have participated in the trial. With a new product type, there is also a learning curve on how different parts of the heating system work – particularly for customers who have installed other technologies at the same time (thermal store, new heating controls such as smart thermostats etc). For users of new systems to have a positive experience, from which they can become advocates of LCTs and support the wider adoption across the UK, installers, energy suppliers and manufacturers will need to develop clear and concise educational materials which build user understanding over time – where needed.
Heating requirements and user preferences – personal attitudes, household situation and heating system configuration create a wide range of expectations and preferences for heat provision. Within the Neat Heat project, we have a range of preferences. Broadly these can be divided into cost-focus vs comfort-focus. Some customers want the ZEB to optimise for the lowest running cost possible, even if this runs the risk of compromised heating performance e.g. a ZEB that charges to the minimum expected heat demand and may not have a reserve of low-cost energy available if user demand or weather changes result in great-than-predicted heat demand. Other customers prioritise comfort above running cost, preferring their ZEB to maintain a float or reserve charge level to cover variability, unpredicted heat demand or just to ensure the fastest-possible re-heat time from a ZEB at a higher state-of-charge (heating output is greatest at higher states of charge).
Early adopters and typical consumers – as with heating expectations, we have a range of customer expectations for technology in the project. Some customers are reviewing charging data, smart meter data, the costs or kWh on a regular basis – comparing gas consumption to ZEB consumption and actively participating in our customer research, product development and feedback. Others are less actively involved, reviewing their OVO energy bills and bill credits, but otherwise not in regular contact with Tepeo (outside of any issues with performance or understanding of the product). There is a lot to learn from our early adopters and projects like Neat Heat support the acquisition of essential insights. One balance all actors in the energy system need to strike however, is that designing for early adopters may not develop the products and solutions needed for wider adoption. As the project progresses, we will capture feedback and suggestions from all participants and report back on any features, updates or changes we intend to make as a result.